Guidelines and Procedures in the Collection and Utilization of the Pooled Resources to Fund Social Amelioration Measures under Republic Act No. 11469 "Bayanihan to Heal as One Act"

March 30, 2020 DOF-DBM JOINT CIRCULAR NO. 2020-001 TO : All Heads of Departments/Agencies/State Universities and Colleges (SUCs) and Other Offices of the National Government Including Commissions/Offices under the Constitutional Fiscal Autonomy Group (CFAG), Government Entities Receiving Budgetary Support (Government Owned or Controlled Corporations (GOCCs)) and Local Government Units (LGUS); Budget Officers, Heads of Accounting; Heads of Authorized Government Depository Banks; COA Auditors; and All Others Concerned SUBJECT : Guidelines and Procedures in the Collection and Utilization of the Pooled Resources to Fund Social Amelioration Measures under Republic Act No. 11469 "Bayanihan to Heal as One Act" 1.0 RATIONALE 1.1 Republic Act (RA) No. 11469 dated March 23, 2020, known as the "Bayanihan to Heal as One Act" declares the existence of a National Emergency Arising from the Corona Virus Disease 2019 (COVID-19) situation and authorizes the President of the Philippines to adopt temporary emergency measures to respond to crisis brought by the COVID-19 pandemic. HTcADC 1.2 Section 4 (y) of RA. No. 11469 authorizes the President to allocate cash, funds, investments, including unutilized or unreleased subsidies and transfers, held by any government owned or controlled corporation or any national government agency in order to address the COVID-19 emergency. 1.3 There is an urgent need to pool the available resources of the government to provide financial assistance to Filipinos whose livelihoods have been adversely affected in this current situation. 2.0 COVERAGE This Joint Circular shall cover the accounts of all National Government Agencies (NGAS) and Government-Owned or Controlled Corporations (GOCCS) maintained outside the Treasury Single Account (TSA) of the Bureau of the Treasury (BTR), which include, among others: 2.1.1 Dormant Accounts deposited with authorized government depository banks (AGDBS) but which have remained inactive for more than five (5) years; 2.1.2 Cash account balances maintained by agencies without specific authority or legal basis; 2.1.3 Cash account balances with a specic authority but maintained with non-AGDBS; 2.1.4 Special and Trust Funds maintained by NGAs and GOCCs with AGDBs but for which the purpose has already been attained, completed or abandoned; 2.1.5 Investments of GOCCs in government securities and with other private institutions; 2.1.6 Any unutilized or unreleased subsidies and transfers held by GOCCs; and 2.1.7 Any cash bank balances held by NGAs and GOCCs maintained outside the TSA. 3.0 PURPOSE(S) 3.1 To prescribe the procedural guidelines in the pooling of cash, funds and investments to fund the Social Amelioration Measures as authorized under the R.A. No. 11469 Bayanihan to Heal as One Act; CAIHTE 3.2 To provide the rules and regulations for the release of funds for the Social Amelioration Measures; and 3.3 To prescribe the required documentary and reporting requirements covering the receipt of funds and its utilization. 4.0 GUIDELINES 4.1 The Department of Finance (DOF), thru the BTR, and in coordination with AGDBs shall identify eligible cash balances of NGAS and GOCCS, sourced from the items enumerated under item 2.0 of this Joint Circular, which can be remitted to the TSA. The pooled cash resources shall be utilized for the implementation of the Social Amelioration Measures for Filipinos. 4.2 DOF shall authorize the AGDBs and non-AGDBs, in coordination with the BTR, to remit the identified eligible cash balances to the TSA. DOF shall also notify the concerned NGAs and GOCCs of the respective cash balances that shall be remitted from their accounts to the TSA. 4.3 For GOCCs' investment in government securities (GS), the DOF shall instruct the BTR to transfer the GS under the name of the BTR. DOF may also direct private instructions to transfer to the BTR any other investments of the GOCCs. 4.4 All balances of cash, funds and investments remitted to the BTR shall form part of the General Fund. 4.5 Upon confirmation that the balances have been remitted, the BTR shall issue a "Certification of Availability of Funds," copy furnished the Department of Budget and Management (DBM). The pooled cash balances as certified by BTR shall be made available to augment the FY 2020 allocation for social programs and shall serve as funding source for releases against the Unprogrammed Appropriation (UA) under Purpose 1 Support for Infrastructure Projects and Social Program. 4.6 Departments implementing the Social Amelioration Measures shall submit a Special Budget Request and this will serve as basis for the DBM to issue a Special Allotment Release Order (SARO) for the purpose. The corresponding NCA shall likewise be issued. 4.7 In the implementation of the Social Amelioration Measures, all budgetary accounting and auditing rules and regulations shall still be applied. To ensure transparency and efficient utilization of the funds released in accordance with this Joint Circular, implementing departments shall submit the required Financial Accountability Reports (FAR No. 1 Statement of Appropriation, Allotments, Obligations and Disbursements and FAR No. 4 Monthly Report of Disbursements) on the programs/projects funded out of the UA releases to DBM. 5.0 APPLICABILITY This Joint Circular shall be in full force and effect for the duration of the effectivity of R.A. No. 11469. 6.0 SEPARABILITY If any provision of this Circular is declared invalid or unconstitutional, the other provisions not thereby affected shall remain valid and subsisting. aScITE 7.0 REPEALING CLAUSE All provisions of existing circulars and other issuances inconsistent with this Circular are hereby modified/repealed only for purposes of implementation of this Circular. 8.0 SAVING CLAUSE Cases not covered in this Joint Circular shall be referred to the DBM for resolution. 9.0 EFFECTIVITY This Joint Circular shall take effect immediately. (SGD.) CARLOS G. DOMINGUEZ Secretary Department of Finance (SGD.) WENDEL E. AVISADO Secretary Department of Budget and Management